Bitcoin, the digital currency known for its volatility and decentralized nature, is making headlines once again.
Given the recent price action of BTC, financial experts such as Arthur Hayes, former CEO of BitMEX, are now speculating on the possible impact of monetary policy changes by the Federal Reserve on the crypto market.
Will Bitcoin Start a New Bull Run?
Recent data from the US Bureau of Labor Statistics showed that inflation as measured by the Consumer Price Index (CPI) has peaked at 9% in mid-2022 and is now declining towards the target 2% level. Some experts believe the trend may signal a change in policy by Federal Reserve Chairman Jerome Powell, potentially moving away from quantitative tightening (QT) in response to the threat of a recession.
But what does this mean for bitcoin? Many argue that the crypto market, especially bitcoin, operates independently from manipulation by central banks and large financial institutions. Furthermore, the bitcoin price is heavily dependent on the future path of USD global liquidity due to the dollar’s role as the global reserve currency.
Recent performance in the market suggests that investors are anticipating a pivot in Federal Reserve policy. Some experts speculate that if the Fed follows through with a policy change, it could continue the current rally in bitcoin and potentially start a “secular bull market.”
Nevertheless, if the Fed fails to follow through or lowers any expectations of a pivot, bitcoin price could potentially slide back towards previous lows.
It is important to note that, like any market, the crypto market is subject to ups and downs and corrections. Some have pointed to the failure of companies such as Three Arrows Capital, FTX, Genesis and Celsius as evidence of this. However, others argue that these failures were a natural part of the market correcting itself and purging poorly run businesses with faulty business models, ultimately leading to a swift and healthy rebound. Was
As the world continues to look to the future of monetary policy and its potential impact on the crypto market, one thing is clear: the world of bitcoin and digital currencies is rapidly evolving, and the potential for both volatility and growth remains high.
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BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.